Real Estate Math

A seller lists a Vermont property for $420,000 and agrees to pay a 5% commission. The property sells for $408,000. How much is the total commission?

A$21,000
B$20,400✓ Correct
C$19,800
D$18,900

Explanation

Commission is calculated on the actual sale price: $408,000 × 0.05 = $20,400. To solve this, multiply the relevant values: $420,000 and $408,000 at 5%.. The correct answer is $20,400.. This is a common calculation on the Vermont real estate exam.

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